Cedi Gains Will Reduce Prices, But Not Immediately – Economic Analyst
Story By: Rebecca Okine
Economic Analyst at Zed FM, Emmanuel Boateng, says while the recent appreciation of the Ghanaian cedi is a positive sign, consumers should not expect an immediate drop in the prices of goods and services.
His comments come in response to calls by the Ghana Union of Traders Association (GUTA), which on Monday May 12, 2025 appealed to its members to adjust prices downward in line with the cedi’s improved performance against the U.S. dollar. Currently, the local currency is trading below the 13-cedi mark against the dollar, a significant gain in recent weeks.
GUTA made this appeal known through a statement signed by the GUTA President Dr. Joseph Obeng. The association described the appreciation of the cedi as a positive shift that should translate into tangible relief for consumers.
“The Ghana Union of Traders’ Associations (GUTA) wishes to appeal to the trading community to adjust prices of goods and services to share the significant gains made by the appreciation of the cedi against the major trading currencies and bring some relief to the consuming public,” the statement read.
Speaking on The Business Breakfast on Zed 101.9 FM, Mr. Boateng noted that although the currency’s strength is commendable, the reality of market operations means that prices won’t adjust overnight.
“It’s not realistic to expect prices to drop immediately,” he said. “Most traders still have goods they bought and they need to recover those costs first.”
He explained that pricing decisions are influenced not only by exchange rates but also by inventory and operational costs that were incurred before the recent appreciation.
Mr. Boateng emphasized that what matters more is the sustainability of the cedi’s performance. A stable and strong currency over a longer period, he explained, would make it feasible for businesses to begin adjusting their prices downward.
“We need to see this trend continue—not just today, but consistently into the coming weeks,” he said. “That’s when price cuts become possible and realistic.”
He also highlighted that price adjustments are not solely determined by foreign exchange rates but other factors.
“Let’s not forget utility tariffs and transportation costs haven’t changed,” he pointed out. “Those operational costs are still being felt by businesses, and they directly influence the final prices we all pay.”
Mr. Boateng concluded by saying that while the appreciation of the cedi offers hope, patience is key. “The signs are good, but let’s give it time. Sustainable change, not a quick fix, is what will bring prices down.”
